Bitcoin’s price experienced a 4% rise in the past 24 hours, reaching $63,259.0. This recovery comes after a period of losses, although overall sentiment towards the crypto market remains negative. The price movement of Bitcoin was partly influenced by weakness in the dollar, as the greenback lost 0.2% on Monday. However, despite this short-term recovery, investors are wary of a potential major liquidation event looming over the market.
The now-defunct exchange, Mt Gox, announced that they will begin distributing Bitcoin stolen during a 2014 hack in early July. This news has added to the apprehension in the market, as traders fear the impact of massive selling pressure on Bitcoin. The recipients of the stolen tokens are expected to offload them, considering the significant increase in Bitcoin’s value over the past decade. This distribution event could potentially trigger substantial price losses, as seen in late June’s market correction.
While Bitcoin recovered some losses, altcoins also saw a rise in prices on Monday. Ethereum, the world’s second-largest cryptocurrency, jumped 3.7% to $3,490.79. Speculation surrounding the approval of a spot Ether exchange-traded fund by the Securities and Exchange Commission has also contributed to Ether’s price movement. Other altcoins like SOL, XRP, and ADA also experienced gains between 1.5% and 8%, albeit with thin trading volumes. Meme tokens like DOGE and SHIB also saw modest increases, reflecting a mixed sentiment in the broader crypto markets.
Despite the recent price movements in cryptocurrency, overall sentiment remains cautious due to upcoming cues on U.S. interest rates. Traders are closely monitoring Federal Reserve Chair Jerome Powell’s speech on Tuesday, along with the release of the Fed’s June meeting minutes on Wednesday. Additionally, nonfarm payrolls data scheduled for Friday will provide further insights on interest rate decisions. The market is speculating about a potential 25 basis points rate cut by the Fed in September, which could have implications for the crypto market.
The crypto market continues to face volatility and uncertainty, driven by a combination of internal and external factors. While recent price movements signal some recovery, the looming distribution of stolen tokens by Mt Gox and the anticipation of key economic data and Fed announcements keep investors on edge. Traders and investors in the crypto space are advised to exercise caution and closely monitor market developments to navigate the current environment effectively.